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The comparative balance sheet of Livers Inc. for December 31, 2013 and 20Y2, is shown as follows: 1 Dec 31, 2093 Dec. 31, 20Y2 2
The comparative balance sheet of Livers Inc. for December 31, 2013 and 20Y2, is shown as follows: 1 Dec 31, 2093 Dec. 31, 20Y2 2 Assets 3 Cash $155,000.00 $150,000.00 400,000.00 + Accounts receivable (net) 5 Inventories 450,000.00 770,000.00 750,000.00 6 Investments 0.00 100,000.00 7 Land 500,000.00 0.00 1,200,000.00 1,400,000.00 (600,000.00) $2,675,000.00 (500,000.00) $2,100,000.00 10 11 $340,000.00 $300,000.00 8 Equipment 9 Accumulated depreciation equipment Total assets Liabilities and Stockholders' Equity 12 Accounts payable (merchandise creditors) 13 Accrued expenses payable (operating expenses) 14 Dividends payable 15 Common stock. $4 par 16 Paid-in capital in excess of par-common stock 17 Retained earings Total Liabilities and stockholders' equity 45,000.00 50,000.00 30,000.00 25,000.00 700,000.00 600,000.00 175,000.00 200,000.00 1,360,000.00 950,000.00 18 $2,675,000.00 $2,100,000.00 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a. The investments were sold for $175,000 cash. b. Equipment and land were acquired for cash. C. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. There was a $500,000 credit to Retained Earnings for net income. f. There was a $90,000 debit to Retained Earnings for cash dividends declared. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Enter amounts that represent cash outfiows as nega numbers using a minus sign. Labels and Amount Descriptions Labels and Amount Descriptions Cash paid for dividends Cash paid for merchandise Cash paid for purchase of equipment Cash paid for purchase of land Cash received from customers Cash received from sale of common stock Cash received from sale of investments December 31, 2013 Decrease in accounts payable Decrease in accounts receivable Decrease in accrued expenses payable Decrease in inventories Depreciation For the Year Ended December 31, 20Y3 Gain on sale of investments Increase in accounts payable Increase in accounts receivable Increase in accrued expenses payable Increase in cash Increase in inventories Loss on sale of investments Statement of Cash Flows Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Enter amounts that represent cash outflows as negative numbers using a minus sign. Livers Inc. Statement of Cash Flows (Label) 1 Cash flows from (used for) operating activities: 2 3 Adjustments to reconcile net income to net cash flow from operating activities: 4 5 6 Changes in current operating assets and liabilities: 7 8 10 11 12 13 Cash flows from (used for) investing activities: 14 15 16 17 18 19 Cash flows from (used for) financing activities: 20 21 22 23 24 Cash balance, January 1, 20Y3 25 Cash balance, December 31, 20Y3
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